Question: My husband and I have owned our home in Gilbert for more than 25 years. The home is free and clear. We are considering adding our two adult daughters to the title to our home, so that in the event of our deaths they could sell the home and use the sale proceeds to support their families. Good idea?
Answer: Bad idea! Children, even adult children, should never be added to the title of a home. The main reasons are, one, any current or future debts of the children — for example, credit- card debts — can become a lien on the home, and two, in the future the children may not agree with the parents if the parents want to sell the home or get a loan on the home. If you and your husband want to transfer the home (or any other real property) to your daughters, you can name them as owners after your death under a revocable living trust, will, or a beneficiary deed. Although a beneficiary deed is recorded now, it only becomes effective after death and can be revoked at any time prior to death.
If you would like assistance regarding commercial or residential transactions, potential litigation, HOA issues, estate planning or other legal matters, please call our office at 602.957.9810 and arrange for an initial consultation with one of our real estate attorneys.